Market surge led by banks and resources
SOUTH Africa’s banking stocks and resources yesterday led a surge of the JSE, with the local bourse snapping its losing streak, closing the day 1 158 points higher.
The all share index closed the day 2.1 percent stronger at 55 760, compared to the previous closing of 54 602. The blue-chip top 40 index ended the day 2.18percent up at 49 097, against the previous 48 052.
The key banks index closed the trading session 2.17 percent higher.
The biggest bank by market capitalisation, FirstRand, did the heavy lifting in the sector, adding 2.74percent to R67.49, while Nedbank closed the day 2.60percent up at R285.Standard Bank, which is the biggest bank by assets, closed the day 1.95 percent higher at R216, while Barclays Africa inched up 1.60percent to R184.91 and Capitec added 1.12 percent at R853.47.
The gains on the local bourse were also broad based, with resources stocks up 2.54percent on the day, industrials up 2.01 percent and financials 2.11 percent.
Exxarro led the charge in resources stocks, closing the day 6.80percent higher at R112, while Sanlam did the heavy lifting in the financial sector, adding 2.97 percent to R80.
The rand, however, extended its losses yesterday and was at R11.98 at the 5pm bid, compared with R11.89 at the same time on Wednesday.
In a note, analysts from Merchant West said following a comment by SA Reserve Bank Governor Lesetja Kganyago last week that the rand appeared overvalued, the unit has been struggling to retrace the resulting losses.
“For now, the escalating tensions between the world’s two largest economies, the US and China, have introduced significant uncertainty and fear into international markets, and has become a theme that is likely to persist,” Merchant West said.
“Despite the overall risk-averse sentiment prevailing in the market, the spillover effects on the oil price could potentially hurt the rand even further.”